In 2011, India’s per capita nominal GDP was nearly double (173%) of the per capita GDP of Bangladesh but now Bangladesh has caught up with India’s per capita nominal GDP. India’s purchasing power parity (PPP) GDP per capita of $6,284 is still above Bangladesh’s $5,139.
Economists Shoumitro Chatterjee, Pennsylvania State University and Arvind Subramanian, Ashoka University point out that India seem to have missed $140 billion per year in low skill manufacturing opportunities.
Bangladesh, China and Vietnam have capitalized on manufacturing exports. However, it would be tough to export from the poor inland areas of India.
The other near term opportunity is for India to improve its farming and agricultural sectors.
SOURCES- Foreign Policy, IMF, Ashoka
Written by Brian Wang, Nextbigfuture.com